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Market Update : 
The Home Depot Q4 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 4:51 PM ET March 03 2009


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Okay. Thank you very much.

Operator

We’ll go next to Shannon Joseph with Wachovia.

Shannon Joseph - Wachovia Capital Markets

Actually, my questions have already been answered. Thanks.

Carol B. Tome

Thank you Shannon.

Operator

We’ll go next to Eric Bosshard with Cleveland Research.

Eric Bosshard - Cleveland Research

Good morning. Two things as we think about 2009 -- first of all, I guess one for Craig, and that is as you think about the merchandising strategy in response to the consumer, can you just give us a little detail on categories or areas or price points or what you are thinking about proactively and how you are going to position merchandising? And then secondly for Marvin, if he’s in the room, just a similar question for how you are thinking about staffing stores and service levels in anticipation of what you are looking at for 2009.

Francis Blake

Okay. Marvin is in the room, so he’ll respond to the second part of your question, Eric. Craig.

Craig Menear

Eric, as it relates to kind of how we are looking at the merchandising piece, using our assortment planning tools, we are actually expanding the variety or clusters, if you will, of assortments that we are putting out there, trying to be more granular to approach specific customer needs and specific types of stores. So we have an improvement in, for example, in our seasonal areas of things like patio grills, power equipment, and so on, where we have put more clusters to be more granular.

Also, the other thing that we have focused on is really making the adjustments where we feel it was necessary and potentially shifting to stronger opening price point and mid-price points, and we have assorted accordingly as we move into 2009 to make those type of adjustments.

And then as I mentioned, we are also watching, because we think that there is potential upside where customers will in fact potentially opt out of services that they have around their home today and elect to do it themselves, and what we saw in snow equipment in the fourth quarter was that actually -- that translated into our better product selling at the top end of the line and we’ll be prepared to make those type of adjustments to fulfill those customers’ needs as well.

Marvin Ellison

Eric, good morning. This is Marvin. The second half of your question, we’re really going to keep it very basic. We have spent a lot of time simplifying the stores, removing task and making sure that we are positioning associates in the customer facing areas of the business. So for ’09, it’s going to be a focus on training, as Frank mentioned earlier. We are going to re-orient and re-train every single associate on the fundamentals of customer service. We’ve never done that before and we are going to focus on that in the first quarter.

We are also going to make sure that we have our associates in the parts of the store during the times of the day that we have our greatest customer traffic and we are going to just focus on customer service. Our goal is going to be to execute well so that we can bring some of the merchandising events and new products to life with better service and just better associate know-how, so really taking that fast, customer service, and associate know-how will be the plan for 2009.


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